tv World Business Report BBC News April 17, 2024 5:30am-6:01am BST
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in the uk, inflation is set to keep falling, with new figures out shortly. so has the economy finally turned a corner? also on the program, as indians prepare to head to the polls, we crunch the numbers of what's expected to be the world's most expensive election. and, going bananas, we consume billions every, but for how long? as adverse weather and soaring costs affect producers across the world, we peel back on an industry under threat. hello, if you just hello, if youjustjoining hello, if you justjoining us you own time of the top business stories. we start in the us where doubts are growing aboutjust how soon interest rates may be cut. the chair of the federal reservejerome powell said on tuesday that inflation was taking longer than expected to return to the central bank's
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2% target and justify cuts to interest rates. mr powell's remarks came after higher—than—expected figures for consumer price index inflation in march. investors now forecast the first move to cut interest rates will come in september. from new york, here's michelle fleury with more. higherfor longer, that higher for longer, that is the message on us interest rates. each of the federal reserve that policymakers have not seen enough progress on inflation since its rapid decline last year. with inflation likely to take longer to return to the fence desired target of 2%, a cut in rates he said did not seem justified. we said that we will need greater confidence that inflation is moving systemically towards 2% before it would be appropriate to his policy. it would be appropriate to his oli . . ., ., ., policy. the recent data have clearly not _ policy. the recent data have clearly not given _ policy. the recent data have clearly not given us - policy. the recent data have clearly not given us greater| clearly not given us greater confidence and instead indicates it is likely to take
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longer than expected to achieve that confidence.— that confidence. today's remarks _ that confidence. today's remarks highly - that confidence. today's remarks highly the - that confidence. today's - remarks highly the different parts been taken by central banks around the world. european central bank similar guard reaffirming the ecb was still on track to cut rates. many people expect the ecb will cut rates injune. the timing of the first red cut in the united states this cycle has become a subject of much debate. from main street to wall street to the campaign trail. if that had previously signalled it intended to collaborate several times this year from a 23 year collaborate several times this yearfrom a 23 year high of 5.5%. us stocks fell after mr powell spoke. let's speak to will walker—arnott, director of private clients at charles stanley. good morning to you. what do you make ofjerome powell's latest comments, as michele explained, it did hit financial markets with wall street seeing another day of the clients. it seems a long way from the end
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of 2023 when we were actually talking about the potential for a hard landing or recession. now we move on and the us economy remains in strong health. earlierthis economy remains in strong health. earlier this week with strong retail numbers which knocks expectations out of the park. we are seeing strong employment number. and yesterday was the imf upgrade forecasts for the us growth and predicts it will be much quicker economic growth in any of its contemporaries. the economy undoubtedly strong and as a result, the market has rapidly reassessed its prospects of predictions for interest—rate cuts. at the beginning of the year, was thinking six interest—rate cuts. two is probably likely and the market as a result has been very volatile. the treasury yield actually had 5% last night in trading. interesting to see the reaction and how the goal posts that changed. as the year has
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regressed. why is inflation the us river to be difficult to tame? ., , ., ~' tame? one of things to think about is is — tame? one of things to think about is is the _ tame? one of things to think about is is the amount - tame? one of things to think about is is the amount of - about is is the amount of stimulus the government has put into the economy and in particularjoe biden�*s administration has done a lot in terms of the inflation reduction act and other piece of stimulus in the aftermath of covid and that really has stoked up consumer demand. underlying all of this is the strength of the us consumer and that really came through in those retail figures that came out on monday and spooked the market a little. in out on monday and spooked the market a little.— market a little. in terms of the impact _ market a little. in terms of the impact that _ market a little. in terms of the impact that is - market a little. in terms of the impact that is going i market a little. in terms of the impact that is going on market a little. in terms of. the impact that is going on in the impact that is going on in the middle east, the acidity that brings, is that on the mind ofjerome powell at the fed? it mind of jerome powell at the fed? , . fed? it is something all central bankers - fed? it is something all central bankers have i fed? it is something all central bankers have at| fed? it is something all. central bankers have at the back of their mind. it is a risk. you look at the oil price, look at the crude oil price, look at the crude oil price and is hovering around $90 a barrel. it will concern central bankers if we were to
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kick back towards $100 a barrel. certainly something they need to keep their ion and if there is any more energy price volatility, that may mean rates stay higher for longer. thank you for your time early this morning. meanwhile here in the uk we will get the latest inflation numbers injust over an hour. economists are forecasting that the annual consumer price index rate for march will ease to 3.1%. last month the rate of inflation in the uk fell to its lowest level in almost two and a half years as price rises for food and eating out slowed sharply. but, as in the us, it is still above the bank of england's 2% target. george buckley is chief uk & euro area economist at nomura. nice to see you. it is interesting. listening to hear how things have changed, for
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the uk, a change for the better you think?— you think? everyone is exoecting _ you think? everyone is expecting inflation - you think? everyone is expecting inflation to i you think? everyone is i expecting inflation to fall. expectancy voltages over 3%. bearing in mind that we% still presented point with the bank of england like this to be. i think one of the big concerns the bank of england will still have after today's data is that services inflation, part of inflation at the bank of england policy can actually do something about is still going to be exceptionally high. it is going to be very close to 6% and it will be a source of concern for the bank of england and it is one reason why, we heard overnight, he was mother cut interest rates as quick as people are thinking.- people are thinking. giving
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interviews _ people are thinking. giving interviews to _ people are thinking. giving interviews to the _ people are thinking. giving interviews to the financiall interviews to the financial times goomburra and others when he says they could be thinking about a fiscal event in the autumn when they cut taxes, also he is pointing to the fact there was a turning point in there was a turning point in the uk economy, people will be feeling better if interest rates are cut. your thoughts on what he had to say? i rates are cut. your thoughts on what he had to say?— what he had to say? i think he is 'ust what he had to say? i think he is just talking _ what he had to say? i think he is just talking about _ what he had to say? i think he is just talking about what - what he had to say? i think he is just talking about what the l is just talking about what the financial markets are expecting. financial markets are expecting the first full cut to be delivered by either august or september. they are expecting another one thereafter at some point either later in the year or early in 2025. there is an expectation and he is probably reflecting that by saying expectations are that by saying expectations are that interest rates will be cuts and it might actually make people feel a bit better because it potentially could cause a decline in mortgage interest rates which is going to make homeowners happier. what about more tax cuts in the alton? something the imf is
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wanting against but of course there is a general election coming up at some point this year. it coming up at some point this ear. , . . , ., year. it is quite reasonable to warn against _ year. it is quite reasonable to warn against it _ year. it is quite reasonable to warn against it because - year. it is quite reasonable to warn against it because there| warn against it because there is not really much room in terms of physical buffers left. we heard that from the office, budget responsibility when they talked about the budget we had last month. there is a possibility we see more tax cuts and quite reasonably so. we do have an election and it doesn't seem unreasonable to announce tax cuts before an election. there is very little room to do a huge amount sickly because the public finances are up because the public finances are up against the buffers.- up against the buffers. thank ou. see up against the buffers. thank you- see you _ up against the buffers. thank you. see you again _ up against the buffers. thank you. see you again soon. - let's head to india now where the world's most populous nation is all set for its biggest show of democracy. over the next six weeks indians will vote in an election where prime minister narendra modi is contesting to win a record third term. with the size and scale it is expected to be the world's most expensive elections ever. archana shukla has been
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number crunching. the stage is all set. 970 million indian voters decide on who runs the country for the next five years. the scale and magnitude of this election bigger than ever before. 5.5 million electronic voting machines, 15 million polling officers, and a million polling stations. indian elections are the most expensive in the world. more than $8 billion were spent in 2019 general elections, and this year the numbers are expected to double. interestingly, the cost of conducting elections isjust 15% to 20% of this figure. the rest spent on political campaigning more than ever. political parties are flush with cash, mainly through something called electoral bonds, a controversial scheme that allowed for people and companies to donate anonymously
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to political parties. $2 billion were raised through these bonds until february, when supreme court banned them. more than half the proceeds went to prime minister modi's ruling bjp party, making them the richest political party going into elections. this election is nothing but corporatisation of the poll campaign interpretation of the trajectory of the development and democracy and the governance. the money which is floating around is going to be at least three times more than what it was into 2019. while there is a cap on how much an individual candidate can spend on campaigning, there is no limit on political parties spending. and hence extensive travels, rallies and road shows, many opting for expensive helicopters and jets. i invite you to join politics. and this time around,
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advertising on digital platforms, including using social media influencers, is estimated to cost nearly 15% of the entire campaign budget. and then there are the freebies and gifts given during campaigning, such as appliances, bicycles, laptops. and what's most difficult to trace are the illegal cash hand—outs given directly to the voters, which never make it to the official book—keeping. already so far, regulator has seized more than $600 million worth of illegal cash, alcohol and drugs connected to election campaigning, clearly showing the scale of the role black money plays in indian elections and the challenges authorities have in stamping it out. archana shukla, bbc news, mumbai. to election campaigning, clearly showing the scale of the role black money plays in indian elections and the challenges authorities have in stamping it out. archana shukla, bbc news, mumbai. let's get some of the day's other news now. united airlines says it has lost $200 million this year so far, because of the grounding of boeing 737 max nine planes. the planes were grounded after an unused door plug blew
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out mid—air on an alaska airlines flight in the us. united also said it will lease planes from airbus going forward, because of a delay in boeing deliveries. adidas has bounced back from the break—up of its partnership with kanye west and says it expects to make profits of more than $740 million this year. the german sportswear giant cut ties with west and his yeezy trainer brand in 2022 after the rapper posted anti—semitic comments on social media. tuesday's upbeat comments from adidas come a month after the company posted its first losses in 30 years. mps in the uk have overwhelmingly backed plans to ban anyone born after 2009 from ever buying cigarettes. the proposals are among the strictest anti—smoking measures in the world. they also include restrictions designed to make vapes less appealing to children. and still to come going bananas, we consume billions every year, but for how long?
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let's head to greece now where the country is gearing up for a day of national strikes. major disruption is expected on the roads, trains, and ports as unionised workers across the transport sectors stage their 24—hour walk out. they are being joined by workers from the healthcare sectors, logistics, telecoms, hospitality and manufacturing. this is all fuelled by high inflation and the cost—of—living crisis, leaving many workers facing the threat of poverty. let's head live to athens
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and speak to elena panaritis, former world bank economist and leader of the athens based think tank, thought—li—action. we are having trouble connecting but it looks like she is with us. can you hear me clearly? she is with us. can you hear me clearl ? , ., ~ she is with us. can you hear me clearl ? , . ~ , ., clearly? very well, thank you. thank you _ clearly? very well, thank you. thank you so _ clearly? very well, thank you. thank you so much _ clearly? very well, thank you. thank you so much for- clearly? very well, thank you. thank you so much for being i clearly? very well, thank you. i thank you so much for being on the programme.— the programme. told us to the challenges _ the programme. told us to the challenges increase _ the programme. told us to the challenges increase currently, | challenges increase currently, ijy challenges increase currently, by all the people will take to the streets today. i by all the people will take to the streets today.— the streets today. i feel --eole the streets today. i feel people feel _ the streets today. i feel people feel squeezed i the streets today. i feel. people feel squeezed with the streets today. i feel- people feel squeezed with high prices, especially with regular food and clothing, utilities, energy. they all go out and strike more about 2k hours and we notice it on transport subways. in the major cities as well as national buses they call around once into the next, it be rather interesting to see how the day is going to go by
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today. how the day is going to go by toda . ., ~ , how the day is going to go by toda . . ~ , ., . today. talk us through what mi . ht today. talk us through what might happen _ today. talk us through what might happen next. - today. talk us through what might happen next. we - today. talk us through what| might happen next. we have today. talk us through what - might happen next. we have seen a lot of strike action in the uk, germany, other parts of the world where people are facing very similar pressures. they just cannot afford to get five currently because of the high price of energy, food, etc. increased, will workers get higher wages as a consequence of this? i higher wages as a consequence of this? ~ ., higher wages as a consequence of this? ~ . . of this? i think we are dealing with issues — of this? i think we are dealing with issues that _ of this? i think we are dealing with issues that are _ of this? i think we are dealing with issues that are really - with issues that are really global and in the end they will become local as well. we are noticing a trend of marginalisation of the it is becoming what i call informal. they are not really becoming poor necessarily but there is an increased potential of getting really poor. greece has 12% of its population but has gone below the poverty line.
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this is really in terrible shape because in 2008 we had 2.2% of extreme poverty, now we are talking about 11%, 11.7. you can see this industry, see this with people hustling for a second job, third orfourth job, people that are not interested in registering in the formal labour force anymore and you also notice people fall out of the great because of the very difficult bureaucracy we are dealing with. although things are more digitalised and he government has taken over quite a lot. this has actually pushed people more into needing to have my things in orderfor them to be able to file a claim for unemployment or a managing through bureaucracy. we do notice people being extreme stress that was not the case
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very much before. iii stress that was not the case very much before.— very much before. ifi could 'ust very much before. ifi could just ask _ very much before. ifi could just ask you _ very much before. ifi could just ask you this _ very much before. ifi could just ask you this question, | just ask you this question, your statistics, 2009 he said over 2% of the population were below the poverty line. in 2010, greece was bailed out, wasn't it? because of the global financial crisis, greece was on the bracket bankruptcy, we remember it well. you were in government and then come and mp increased and now nearly 12% of the population is they are below the poverty line. the honey scene is not working for a lot of people. —— economy it would seem. a lot of people. -- economy it would seem.— would seem. let's put it all into perspective... - would seem. let's put it all into perspective... we - would seem. let's put it all| into perspective... we have would seem. let's put it all- into perspective... we have not come a time. — into perspective... we have not come a time, sorry. _ into perspective... we have not come a time, sorry. ten - into perspective... we have not come a time, sorry. ten years i come a time, sorry. ten years of crisis — come a time, sorry. ten years of crisis and — come a time, sorry. ten years of crisis and the _ come a time, sorry. ten years of crisis and the last _ come a time, sorry. ten years of crisis and the last one - of crisis and the last one endedin of crisis and the last one ended in 2018, 2019, we are still towing very much more than the rest of the european union, 2% gdp growth as opposed to 0.5. a lot of catching up which we are doing but there
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are a lot of other people falling out because they cannot meet everyday expenses, inflation is very high. it is problematic and we need to simplify bureaucracy. that is the only way to go forward. i5 the only way to go forward. is that going to happen with this current government? i5 that going to happen with this current government?- that going to happen with this current government? is there an 0 tion? current government? is there an option? right— current government? is there an option? right now _ current government? is there an option? right now is _ current government? is there an option? right now is the - option? right now is the government we have. we don't seem to another option out there back into better. we have to work with what we have. we are going _ to work with what we have. we are going to — to work with what we have. we are going to have to leave it there but it is fascinating and thank you. it was early this morning. that is the day ahead increased, very difficult for many has lots of workers will down tools today. new zealand's prime minister christopher luxon, has wrapped up his first official visit to singapore and will be spending the rest of his asia tour in thailand, and the philippines. 0ur asia chief presenter
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steve lai caught up with the prime minister who first gave his assessment on the state of his country's economy. we have been given challenging —— challenging issues at home. even in the 150 days or so since i have been prime minister, we're making progress in getting to the recourse that is lowering inflation. so we can lower interest rates, groovy, and key people in employment and the exciting thing is how we actually grow our economy and take it forward from here. that is the bit of why we are travelling through the region, we think we can double exports in the next ten years. can attract foreign direct investment to support some of the investment in infrastructure that we want to make. i think we have a pretty exciting future. yes, some short—term problems to work through around the cost of living and fascia, we have seen a stove with many countries around the world but we are
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broken —— working diligently. 0ne broken —— working diligently. one of the first thing she did was to harass an anti—smoking law than those about to pull the difference which is essentially an outstanding piece of legislation in new zealand called smoke—free legislation, want to get to a position in 2025 where we are now 5% of new zealanders as daily smokers for the power legislation has been rotating and driven our daily smoking rates down tremendously and in the last together have gone from something like 70% to just under around 6.8%. from something like 70% to 'ust under around 6.8%.i under around 6.8%. adele another two _ under around 6.8%. adele another two points - under around 6.8%. adele another two points over i under around 6.8%. adele i another two points over the course of the last 12 months. we had a piece of legislation and policy and i think has worked incredibly wealthy new zealand. disagreed with the approach of the previous government because we thought they would actually drive more crime and a greater black market for cigarettes which are something we don't support. finally this hour, a topic with appeal. it's banana day around the world, yes there is such a thing and when i arrive
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at the bbc at 3am, i do eat a banana with a cup of tea. apparently each year, worldwide we eat over 100 billion bananas, but our favourite fruit is facing a crisis. the sustainability of banana production is under threat from a potent mix of adverse weather, soaring production costs and plant disease. so what can be done to make the banana industry more sustainable? well, let's speak to a woman who knows all about bananas, silvia campos who is senior advisorfor bananas at faitrade international. welcome to the programme. first of all, talk us through the challenges.— of all, talk us through the challenges. good morning, everyone- _ challenges. good morning, everyone. farmers - challenges. good morning, everyone. farmers are - challenges. good morning, l everyone. farmers are facing hard challenges in producing bananas. from the weather, too much sun, too much rain, no
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rain, frequency of hurricanes, it affects production, increases pat's. and the stress of the plant. that reduces production. 0n of the plant. that reduces production. on top of that, imported services costs going up, making a hard time for all producers. this is not a new problem, an old problem. 0n producers. this is not a new problem, an old problem. on top of that, remember that bananas are cheap and producers need to cover cost of production if they don't receive sufficient prices, they cannot continue producing. that affects a lot of prison communities. if there are no prolonged production and committees, there are nojobs. withoutjobs, there is no future in the areas.
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without jobs, there is no future in the areas. what can be done about _ future in the areas. what can be done about this? - future in the areas. what can be done about this? first, i be done about this? first, producers _ be done about this? first, producers have _ be done about this? first, producers have to - be done about this? first, producers have to be - be done about this? first, producers have to be able | be done about this? first, i producers have to be able to cope with climate change. soil has to be healthy to have healthy bananas. healthy plants. this is one of our major focuses with our producers and latin america and western africa. healthy soil, healthy plants, being able to cope with whether, lack of water and reduce impact of disease. this is the first point. second, they have to receive fair prices to cover the cost of production. if we want to have sustainable production of bananas. so you can enjoy your banana before yourjob. and then they have to be able to keep paid fairly for those bananas. there are times in together that other
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producers receive $2 or $3 per box when the cost of production is around $8. with that situation, it is impossible to continue producing bananas and latin america and western africa. ., ~' , ., latin america and western africa. ., ,, , latin america and western africa. ., , �* africa. thank you. sadly we're out of touch _ africa. thank you. sadly we're out of touch with _ africa. thank you. sadly we're out of touch with an _ out of touch with an interesting and important topic. i cannot believe the matter producers get $2 for a box, that is something else when you think about what you pay for your bananas in the shops. thank you for your company as well, have a really good day, i will see you again soon. hello there. tuesday was another fairly cool day, winds a little bit lighter. but we had further showers, some heavy with hail and thunder once again. next few days, it's pretty similar, it stays on the chilly side. there will be further showers or longer spells of rain, a bit of sunshine. nights will be cool.
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we're still in this chilly air mass, as you can see here, for wednesday. so it means things starting off rather chilly. further showers across eastern areas, and this tangle of weather fronts will bring thicker cloud and some rain to western parts of the uk through the day. so we'll start with some showers across eastern scotland, some snow on the hills, showers, windy weather affecting the northeast of england. could be quite cold and windy for north sea coasts of yorkshire. this area of cloud and rain pushes across the hebrides, northern ireland down into parts of wales, southwest england through the course of the day. in between, there will be some sunshine around, but it's going to be a cooler day, we think, temperatures 9—11 celsius for most of us, single digits along north sea coasts. the showers linger on for a while through wednesday night before it turns drier and clearer with lighter winds across england and wales. so, here it will turn quite chilly. temperatures recovering, though, in the northwest as wetter and windier weather starts to move in thanks to this little area of low pressure, which will bring wet and windy weather to the northern half of the country through the day on thursday. this area of high pressure will tend to keep things drier
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in the south. so england and wales starting off chilly but bright, plenty of sunshine, wetter, cloudier windier weather will move across scotland, northern ireland and down into parts of north wales, northern england, the north midlands. southern england, south wales will do pretty well with staying dry, i think, with some sunshine, lighter winds here. so temperatures around 1a celsius, but windier, wetter, cooler further north. that area of low pressure clears away gradually during the course of friday, high pressure starts to topple in, but we could start off with a few showers through central, southern and eastern areas on friday, a brisk northerly breeze affecting much of the country, particularly towards the east. lighter winds further south and west, variable clouds, some sunshine, temperatures could be up to 111—15 celsius degrees in the south. still quite cool in the north. now into the weekend, we're expecting this area of high pressure to move in. so i think it'll be turning a lot drier, but we could see quite a bit of cloud around. that depends on what we'll see with temperatures. if we see some sunshine, then we could see the high teens across some central and southern areas. if it's cloudier, it could be a bit cooler than this.
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iamata i am at a pasta factory where they have been forced to put prices up. the hope today is that the rate at which prices are rising continues to slow down. will you feel it in your pocket? not for a while yet. a0 years since the murder of police constable yvonne fletcher outside the libyan embassy — now, a private prosecution is launched in the search forjustice a call from senior doctors to make smacking children illegal in england and northern ireland — in line with the rest of the uk. 100 days until the start of the paris 0lympics 100 days until the start of the paris olympics and we are at the manchester cycling centre. with the loss of establish names from the team we are meeting the next generation of cyclists hoping to go for gold in paris. a third walk for the 3 dads, as they set off once again to raise awareness of suicide prevention.
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